Savills has confirmed its appointment as agent for 'Dublin Living' - Ireland's largest ever Private Rented Sector (PRS) public offering comprising approximately 1,170 units within four schemes in one lot.

Savills has confirmed its appointment as agent for 'Dublin Living' - Ireland's largest ever Private Rented Sector (PRS) public offering comprising approximately 1,170 units within four schemes in one lot.

Forward funding proposals are being invited by Savills Director of Investments, Domhnall O'Sullivan, from this week for the portfolio, which will contain four newly-developed schemes including Mount Argus and St. Clare's in Harold's Cross, Dublin 6W along with Carriglea in Bluebell, Dublin 12 and the Cabra Road development in Dublin 7. The development sites are currently owned by Marlet Property Group in conjunction with their finance partner, the international asset managers M&G Investments.

The first large scale PRS platform opportunity of its kind to be offered for sale in the Irish market, the Dublin Living portfolio has a quoting price in excess of €425m which equates to an estimated net income yield today of approximately 4.6pc after purchasers' costs.

News of the offering, the detail of which confirms the report first carried by the Irish Independent on May 11 last, will be welcomed by the Government as it struggles to contend with the housing crisis which is proving to be particularly acute in Dublin. The portfolio is expected to attract significant levels of interest from domestic and overseas investors looking to establish a considerable foothold in Dublin's PRS market capitalising on rental growth prospects in the city.

Based on current letting indicators for older existing multi-family schemes, the estimated net rental value of the Dublin Living scheme today is predicted to be in the region of €20.5m allowing for market standard operational costs. However, with the portfolio's apartments due for phased completion between the second half of 2018 and the early part of 2020, this estimated rental figure is forecast to increase significantly during the construction period of the four schemes due to the chronic undersupply of private rented accommodation in Dublin and the consequent inflationary pressure on rents.

The four PRS schemes will deliver a mixture of residential apartments, which are predominately two-beds (750 in total) with 255 one-beds and the remaining 165 units laid out as three-beds.

According to Savills Director of Research, Dr. John McCartney, the number of households renting privately in Dublin has grown by 42,400 since 2012. However the very limited amount of housing construction has failed to keep up with this continually increasing rental demand and the current vacancy rate in the Dublin PRS has been driven down to just 1.45pc.

Domhnaill O'Sullivan said: "This portfolio will present an excellent forward funding opportunity to acquire a significant volume of new PRS units within a thriving European capital city, as property prices and rents in Dublin continue to rise. The developments on offer are in established residential locations with exceptionally-high rental demand which is likely to attract interest from a range of investors."